The collapse in high-risk assets makes the investor resort to the strong dollar.

The losses in the global economy continue due to the economic conditions
and conditions that the world is experiencing from successive crises,
which have caused losses estimated at 23 trillion dollars during
the current year only, and in light of these difficult times,
investors resort to a haven to hedge against the risks of the markets
and did not find in front of them better than the dollar The strong US dollar,
which has an inverse relationship with the performance of risky assets,
and the dollar continues to rise with the expectations of the Imperial Canadian Trade Bank.

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The dollar index is rising, stocks are falling

The turmoil of the Turkish economy makes it resort to Russia’s help to bridge the trade deficit and the rise in gas prices.

Because of weak production, France is considering stopping energy exports to Italy.

The dollar index is rising, stocks are falling

Research reports issued last Thursday by Citi,
concerning expectations of a decline in inflation that the United States is seeking,
will cause a deep recession,
which will enhance the decline in corporate and stock profits
before the Federal Reserve’s position shifts,
and as for the spot dollar index, which measures the currency Against 10 other currencies,
it rose by about 11% during the current year only,
which is the best performance according to Bloomberg data since 2004.

The continued dominance of the dollar

After the US dollar recorded significant increases after the recent inflation data released last Tuesday,
which came at a faster pace than expectations, it made investors bet more on further interest rate hikes,
which in turn reflected in the slowdown in risk appetite globally,
and expectations of re-pricing are still The risks of tightening the Federal Reserve
will lead to more strength in the dollar in the short term,
in addition to the fact that investors always desire the dollar,
which has the advantage among the rest of the assets, as well as US assets in general.

Citigroup forecast.

The opinions of Citi analysts were conditioned on the fact that the dollar,
to end the upward trend, must make a clear shift regarding the Fed’s position on interest rates,
or significant declines in future expectations for the situation of the global economy,
which suffers from many crises that will also appear successively in the next year 2023,
but generally A year, everyone is still waiting for new global data that will maintain the stability of the dollar

The Japanese yen fell against the dollar to its lowest level in 24 years,
with the Chinese yuan falling below 7, the Canadian falling to its lowest level in two years,
and the Australian near its lowest in several years.

artical name The collapse in high-risk assets

The turmoil of the Turkish economy makes it resort to Russia’s help to bridge the trade deficit and the rise in gas prices.

The Turkish economy is currently living in an unstable situation in light of the rise in natural gas prices,
which exceeded 50 billion dollars.
Turkish President “Recep Tayyip Erdogan”,
before the upcoming presidential elections, is seeking to seek regional and quick solutions,
and therefore “Erdogan” is trying in his meeting with the Russian President.
Vladimir Putin, “who is scheduled to strengthen financial relations with Russia last Friday,
by reducing 25% of gas prices, and trying to pay a large part of the bill in Turkish lira,
but on the Russian side, the matter is still not resolved.
” Russian Deputy Prime Minister during the month of August
that the two countries agreed that the partial payment in Russian rubles would begin.

artical name The collapse in high-risk assets

Turkey doubled its imports of Russian oil

Because of the decline in European supplies of gas,
Turkey resorted to increasing its imports of Russian gas,
as imports rose on August 22, exceeding 200 thousand
barrels per day since the beginning of this year,
which is higher than the percentage in the same period last year 2021,
which was at 98 thousand barrels Only,
and this came in light of the two countries efforts to strengthen relations
on the trade side despite the Western sanctions signed on Russia,
but Turkey did not impose any sanctions on Moscow because of its war on Ukraine because,
according to it, it is still dependent on Russian energy supplies.

Turkey strengthens its relationship with Russia to put pressure on the West

Turkey’s attempts to deepen relations with Russian influence will not only receive financial support,
but because of Russia’s position, Turkey seeks to influence the West,
describing it as a strategic alliance. Ukraine received assistance in arming,
but it warned the West of the sanctions imposed on Russia
and that they are strong and should not be underestimated.
The strengthening of relations in recent years came despite
the existing dispute over the war in Syria.

artical name The collapse in high-risk assets

Because of weak production, France is considering stopping energy exports to Italy.

Europe is experiencing an energy crisis that is still being searched for solutions with the approach of winter,
but France also, after it was the source of energy to Italy,
is currently experiencing some problems in the production of energy from nuclear plants,
which has decreased by a very large percentage during the last period of this year,
Expectations indicate that energy production in France will drop to its lowest level in three decades,
but at the same time it is seeking to maintain old stations,
and this makes France turn from a strong exporter of energy to a net importer.

As for the energy exported to Italy,
it may last for up to two years, and on the Italian side,
it received a notification from EDF about a possible stop,
so Italy seeks to take appropriate measures
and start before the crisis worsens.

Crisis details

With the intensification of the crisis in Europe,
the reality that imposes itself is that all countries seek to favor the national interest,
which is what France started by stopping the export of
energy to Italy with the advent of the winter month,

while Italy seeks to confront the crisis by reducing consumption of natural gas by relying on coal
and reducing consumption of natural gas.
The level of heating in the country and directing citizens to rationalize use,
as Italy imports approximately 135 of its internal consumption of energy,
and Italy relies on importing almost half of the amount estimated at
about 5% of its annual consumption from France only.

Europe suffers and seeks solutions

The current situation includes all European countries,
specifically because of their sanctions imposed on Russia,
which prompted them to provide 280 billion dollars to reduce the pain of the crisis,
in addition to its efforts to raise interest rates
in the face of high inflation and strongly affecting the economy,
but the support remains more focused on the most vulnerable citizens ,
and perhaps focus on increasing the efficiency of companies rather
than distributing funds on a large scale
Because of the turmoil of the current situation,
this represents a great pressure on Europe,
which seeks to strengthen the sanctions signed on Moscow for its war on Ukraine,
and we may see in the future steps backward in this regard.

artical name The collapse in high-risk assets

The collapse in high-risk assets

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